The Infinity I-China fund said today that it has exercised a partial exit from its Digital China (861.HK) investment for over $11 million (HK $85.1 million).
Infinity sold a block of shares it purchased at HK$2.43 per share in September 2008 for HK$ 6.80 per share. The fund gained about 180% on its investment.
Infinity still holds $14 million worth of shares, so that its total investment has appreciated to $25 million. Its total profit (realized and unrealized) on the investment is $16 million.
The I-China fund is the largest China-Israel fund and the second China-Israel fund of the Infinity Group, established by IDB Holding Corp. Ltd.'s (TASE:IDBH) Clal Industries and Investments, together with China Development Bank and CSVC.
Mr. Amir Gal-Or, Infinity I-China’s Hong Kong based managing partner, said, “We invested in Digital China and its private Chinese spin off, ITS, at the beginning of the crisis. Infinity brought advanced Israeli technology to DC and its distributional channels. We did so because we knew that DC is an industry leader with a strong market presence and, all things considered, the time was excellent to exercise our ability to add value and invest. Our partial exit today demonstrates Infinity’s ability to make the right investment decisions, also during a crisis, and then generate outstanding returns for our investors. Infinity still has a substantial amount invested in Digital China, understanding that the company remains one to be watched.”
Headquartered in Beijing, information technology (IT) company Digital China (DC) has more than HK$5 billion in revenue. DC focuses on three major business segments: systems integration, IT services, and distribution of IT products.
DC was spun off from the Legend Group (together with Lenovo) and has been independently listed on the Hong Kong Stock Exchange since 2001. DCITS, a leading provider of Information Technology (IT) services in China, is a spin-off of Digital China.
Infinity Group currently manages more than $600 million through three funds, two in China.
Published by Globes [online], Israel business news - www.globes-online.com - on October 20, 2009
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